Published: 1:30 pm, Tue. Jan. 3rd, 2017Updated: 1:29 pm
Baker Hughes Inc. has closed a multi-million-dollar deal and resurrected a nearly century-and-a-half-old company.
The Houston-based oil field services giant brought back the BJ Services brand as a new company based in Tomball through a deal with two private-equity investors. The deal was announced in late November and closed Dec. 30.
Baker Hughes retains a 46.7 percent ownership stake in the company, while Houston-based CSL Capital Management and West Street Energy Partners, a fund managed by the Goldman Sachs’ Merchant Banking Division, own the other 53.3 percent.
BJ Services has a combined capacity of 1.9 million hydraulic horsepower and 240 cementers, making it North America’s largest pure-play oil field pressure pumping company, per the release.
Byron Jackson founded the company in 1872.
Warren Zemlak, formerly president and CEO of CSL’s Allied Energy Services, has been appointed BJ Servics’ president and CEO, as expected. Caleb Barclay has been appointed COO, per the release. Barclay brings more than 16 years of industry experience, having held senior leadership roles in North American pressure pumping companies.
“We are proud to build upon the BJ legacy,” Zemlak said in a release. “I believe our focus on execution, broad expertise and strong capital discipline combined with the second largest cementing and fracturing fleets in North America will result in the new BJ Services being a fierce competitor.”
Baker Hughes spun off BJ Services Co. in 1991 to focus on its core drilling business but later acquired the Houston-based spinoff in a $5.5 billion deal that closed in April 2010.
BJ Services was a leader in hydraulic fracturing, but its business was focused on the U.S., while Baker Hughes emphasized its international operations.